In the daily charts, the short term directional indicators
has a single prong just pushing into the oversold region whilst the other, is
still a little way off.
Hopefully this push lower is of substance and maybe we
are able to see gold back to the 1200’s levels.
It will be a great relief for
those celebrating the Eid festival, soon, to be able to enjoy their seasonal
gold fixes at lower rates.
The medium term trending indicators have now
penetrated deeply below the parity line and usually, it will continue on for at
least another week.
My friend reminded me that actually a text book example of
a classic divergence, had previously formed but the reaction seemed retarded
and only now, it’s started on it’s journey lower.
The long term directional indicators have
crossed over and bearish tones are set.
Since it’s newly confirmed, the tone may
last up to 2 weeks.
The momentum/volatility indicators are in a weak phase
right now but it seems to be missing the necessary intention to get off its
butt and start moving.
Hopefully we might be able to turn up at least 3 notches
an gold should be finally on it’s way.
If not, any move lower will be hard
fought to overcome every support below.
Interim supports are at 1232, 1220.50 & 1206 with minor
supports at 1228, 1218.40 & 1208.80.
Interim resistances are 1236.50, 1243.50 & 1252.50 with
minor resistances at 1238, 1251.70 & 1268.30.
The daily/weekly trend changer points are at
1294.70/1303.60.
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